Season tickets for the Longhorns are priced at $230 and include 20 games. Revenue is recognized after each game is played. When the season began, the amount credited to Unearned Season Ticket Revenue was $1,265,000. By the end of October, $759,000 of the Unearned Season Ticket Revenue had been recorded as earned.
Instructions
(a) How many season tickets did the Longhorns sell?
(b) How many home games had the Longhorns played by the end of October?
(c) Prepare the entry for the initial recording of the Unearned Season Ticket Revenue.
(d) Prepare the entry to recognize the revenue after the first home game had been played.